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Karachi stock exchange-100 index rose by 2131 points

Pakistan stock market saw a positive week as Karachi stock exchange-100 index rose by 2131 points during the week. Panama verdict was the prime mover of the domestic stock market as investors showed interest in all the heavyweight stocks. However, foreign investors remained net sellers during the week and booked their profits. They were still confused about the future of the Pakistan stock market.They sold net equities of about $ 31.97 million during the week.

Karachi stock exchange-100 index started the week at 47577 points and ended the week at  49708 points. The weekly share trading volume showed a decreased of 62  % as compared to the last week. The weekly share trading volume was approximately 1390 million shares as compared to the last week’s volume of 855 million shares.

Pakistan stock market started the week on a negative note as political uncertainty kept the Karachi stock exchange-100 index in check for first two days. The index fell by 701 points during first two days of the week. Karachi stock exchange-100 index rose by  2814 points during the last 3 days  of the trading week. The  easing of the political tension due to Panama case verdict helped  Karachi stock exchange-100 index to gain 2814 points in last three days of the trading week.

Best Performers of the week

Exploration & Production, Cement and Oil marketing sectors were three best performing sectors of the week. Exploration & Production, Cement and Oil marketing sectors grew by 6.1 %, 4.8 % and 7.5 % respectively.These sectors were helped by easing political tension after the Panama case verdict.

Future Outlook

Overall Pakistan stock market has a very decent outlook and it is offering very favorable investing environment for the investors. FDI has showed a 12.4 % growth in last nine months of the current fiscal year. Moreover, IMF projected that Pakistan economy will grow by 5 % and 5.2 % in 2017 and 2018 respectively. Market analysts are expecting a positive sentiment in the next week. The macroeconomic stability, oil price fluctuations and temporary political stability are three reasons for their optimism. Prime Minister is partially safe after the Panama verdict given by the Supreme Court on Thursday. Two judges have declared him dishonest and other three have referred this matter to JIT. So this means that Prime minister is not completely safe. Now he and his family have to face investigation of the Joint investigation team announced by Supreme Court of Pakistan. Moreover, opposition parties are asking for his resignation as he has lost his moral grounds to rule this country. So, severe political pressure can force him to resign and that can create political uncertainty in next two weeks or so. This situation is ideal for the value investors as they can invest in fundamentally strong shares to improve their long term gains.

Oil based stocks are also offering a very good investment opportunity for the investors. Heavy weights stock such as Pakistan petroleum and OGDCL showed handsome gains in the current year. Future US air strikes on Syria can create oil supply crisis and that will increase the international oil prices. Investors can really earn short term returns through using day trading strategies.

About Emaad Qureshi